**Executive Summary**
This document is a notification from the Government of Tamil Nadu regarding the sale of Tamil Nadu Government Stock (securities) through an auction conducted by the Reserve Bank of India. The sale concerns a 30-year tenure stock for an aggregate amount of ₹1000 crore. Key dates include the auction on July 22, 2025, and the payment date for successful bidders on July 23, 2025.
**Key Points / Main Content**
* **Loan Details:**
* Sale of Tamil Nadu Government Stock (securities) with a 30-year tenure.
* Aggregate amount: ₹1000 crore (Nominal).
* The coupon rate will be determined by the Reserve Bank of India at the yield-based auction.
* **Object of the Loan:**
* To finance part of capital expenditure of Plan Schemes and other Development Schemes under execution.
* Central Government consent has been obtained.
* **Method of Issue and Auction:**
* The stock will be sold through the Reserve Bank of India, Mumbai Office (PDO) Fort, Mumbai- 400 001 by auction.
* Auction Date: July 22, 2025.
* Bids to be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
* Competitive bids submission: 10:30 A.M. to 11.30 A.M. on July 22, 2025.
* Non-competitive bids submission: 10:30 A.M. to 11.00 A.M. on July 22, 2025.
* Result will be displayed on the Reserve Bank of India website on the same day.
* **Payment and Tenure:**
* Payment by successful bidders due on July 23, 2025 before the close of banking hours.
* Payment methods: cash, bankers' cheque/pay order, demand draft, or cheque drawn on Reserve Bank of India, Mumbai (Fort) /Chennai.
* Stock tenure: 30 years, commencing on July 23, 2025.
* **Repayment and Interest:**
* Loan repayment date: July 23, 2055.
* Interest to be paid on January 23 and July 23.
* **Eligibility:**
* Investment is eligible for Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.
* The stocks will qualify for the ready forward facility.
* Up to 10% of the notified amount will be allotted to eligible individuals and institutions, subject to a maximum limit of 1% of the notified amount.
**Impact Analysis**
**Government of Tamil Nadu**
* **Impact:** Receives funds for financing Plan Schemes and other Development Schemes.
* **Action Required:** Oversee the loan process and allocate the funds appropriately.
**Reserve Bank of India (RBI)**
* **Impact:** Conducts the auction and manages the sale of the Government Stock.
* **Action Required:** Conduct the auction on July 22, 2025, and determine the coupon rate.
**Banks and Financial Institutions**
* **Impact:** Have the opportunity to invest in Government Stock, which qualifies for SLR.
* **Action Required:** Submit bids through the E-Kuber system by July 22, 2025, and make payments by July 23, 2025, if successful.
**Eligible Individuals and Institutions**
* **Impact:** Opportunity to invest in Government Stock through non-competitive bidding.
* **Action Required:** Submit non-competitive bids through the E-Kuber system by July 22, 2025.
Key Entities Referenced
Tamil Nadu Government Stock: Securities being sold by the Government of Tamil Nadu with a 30-year tenure for an aggregate amount of ₹1000 crore.
Reserve Bank of India: The central bank through which the Government Stock will be sold via auction, and that will determine the coupon rate.
Banking Regulation Act, 1949: The Act under which the investment in Government Stock will be reckoned as an eligible investment in Government Securities by banks.
Mumbai: The city where the auction will be conducted by the Reserve Bank of India.
Finance Department: The department of the Tamil Nadu government issuing the notification.